2013 - 2014 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 40
June 4, 2013 - Offered by Joint Committee on Finance.
AB40-ASA1,1,2 1An Act; relating to: state finances and appropriations, constituting the
2executive budget act of the 2013 legislature.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB40-ASA1,1b 3Section 1b. 1.10 (3) (t) of the statutes is created to read:
AB40-ASA1,1,44 1.10 (3) (t) The kringle is the state pastry.
AB40-ASA1,1c 5Section 1c. 1.10 (4) of the statutes is amended to read:
AB40-ASA1,1,96 1.10 (4) The Wisconsin Blue Book shall include the information contained in
7this section concerning the state song, ballad, waltz, dance, beverage, tree, grain,
8flower, bird, fish, animal, domestic animal, wildlife animal, dog, insect, fossil,
9mineral, rock, soil, fruit, and tartan, and pastry.
AB40-ASA1,1g 10Section 1g. 1.12 (1) (b) of the statutes is amended to read:
AB40-ASA1,2,411 1.12 (1) (b) "State agency" means an office, department, agency, institution of
12higher education, the legislature, a legislative service agency, the courts, a judicial

1branch agency, an association, society, or other body in state government that is
2created or authorized to be created by the constitution or by law, for which
3appropriations are made by law, excluding the Health Insurance Risk-Sharing Plan
4Authority and
the Wisconsin Economic Development Corporation.
AB40-ASA1,1p 5Section 1p. 5.05 (2m) (c) 6. b. of the statutes is amended to read:
AB40-ASA1,2,126 5.05 (2m) (c) 6. b. The board shall enter into a written contract with any
7individual who is retained as special counsel setting forth the terms of the
8engagement. The contract shall set forth the compensation to be paid such counsel
9by the state. The contract shall be executed on behalf of the state by the board's legal
10counsel, who shall file the contract in the office of the secretary of state. The
11compensation shall be charged to the appropriation under s. 20.455 (1) (b) 20.505 (1)
12(d)
.
AB40-ASA1,1t 13Section 1t. 13.09 (6) of the statutes is amended to read:
AB40-ASA1,2,1514 13.09 (6) The joint committee on finance shall maintain its offices and meeting
15room on the first 4th floor of the south east wing of the capitol.
AB40-ASA1,2 16Section 2. 13.106 (1) (intro.) of the statutes is repealed.
AB40-ASA1,3 17Section 3. 13.106 (1) (a), (b), (c), (d) and (e) of the statutes are renumbered
1813.106 (3) (ac), (ag), (aL), (ap) and (at).
AB40-ASA1,4 19Section 4. 13.106 (3) (intro.) of the statutes is amended to read:
AB40-ASA1,2,2420 13.106 (3) (intro.) By October 15 of each even-numbered year, the Medical
21College of Wisconsin and the University of Wisconsin-Madison Medical School shall
22submit a report to the governor, the joint committee on finance, and to the chief clerk
23of each house of the legislature for distribution to the legislature under s. 13.172 (2),
24that provides information on all of the following:
AB40-ASA1,5 25Section 5. 13.106 (3) (a) of the statutes is renumbered 13.106 (3) (ax).
AB40-ASA1,6
1Section 6. 13.106 (4) of the statutes is created to read:
AB40-ASA1,3,72 13.106 (4) (a) In this subsection, "rural or underserved urban medicine
3program" includes the Wisconsin Academy for Rural Medicine, the Training in
4Urban Medicine and Public Health program, any community medical education
5program of the Medical College of Wisconsin, and any other rural or underserved
6urban medicine program established after the effective date of this paragraph ....
7[LRB inserts date].
AB40-ASA1,3,118 (b) By October 15 of each year, the Medical College of Wisconsin and the
9University of Wisconsin-Madison Medical School shall submit an annual report to
10the governor and to the chief clerk of each house of the legislature for distribution
11to the legislature under s. 13.172 (2) that provides information on all of the following:
AB40-ASA1,3,1312 1. The number of students enrolled in rural or underserved urban medicine
13programs.
AB40-ASA1,3,1514 2. The medical specialties and residency locations of the students in rural or
15underserved urban medicine programs.
AB40-ASA1,3,1716 3. The initial postresidency practice locations for graduates of rural or
17underserved urban medicine programs.
AB40-ASA1,6f 18Section 6f. 13.172 (1) of the statutes is amended to read:
AB40-ASA1,3,2419 13.172 (1) In this section, "agency" means an office, department, agency,
20institution of higher education, association, society, or other body in state
21government created or authorized to be created by the constitution or any law, that
22is entitled to expend moneys appropriated by law, including the legislature and the
23courts, and any authority created in subch. II of ch. 114 or subch. III of ch. 149 or in
24ch. 231, 233, 234, 238, or 279.
AB40-ASA1,7 25Section 7. 13.48 (2) (b) 3. of the statutes is amended to read:
AB40-ASA1,4,6
113.48 (2) (b) 3. The Except as provided in sub. (14) (am), the building
2commission may lease space in buildings described under subd. 2. to other
3governmental bodies or to nonprofit associations organized for public purposes and
4shall charge those bodies or associations an annual rental which shall be not less
5than the cost of operating, maintaining and amortizing the construction cost of the
6leased space.
AB40-ASA1,8 7Section 8. 13.48 (14) (title) of the statutes is amended to read:
AB40-ASA1,4,88 13.48 (14) (title) Sale or lease of lands property.
AB40-ASA1,9 9Section 9. 13.48 (14) (a) of the statutes is amended to read:
AB40-ASA1,4,1210 13.48 (14) (a) In this subsection, "agency" has the meaning given for "state
11agency" in s. 20.001 (1), except that the term does not include the Board of Regents
12of the University of Wisconsin System
in s. 16.52 (7).
AB40-ASA1,10 13Section 10. 13.48 (14) (am) of the statutes is renumbered 13.48 (14) (am) 1.
14and amended to read:
AB40-ASA1,5,515 13.48 (14) (am) 1. Except as provided in this paragraph and subject to par. (d),
16the building commission shall have the authority to sell or lease all or any part of a
17 state-owned building or structure or state-owned land, including farmland, where
18such authority is not otherwise provided to an agency by law
real property unless the
19sale or lease is prohibited under the state or federal constitution or federal law or the
20sale is conducted as a part of a procedure to enforce an obligation to this state
, and
21may transfer land real property under its jurisdiction among agencies. The
22commission may sell or lease property under this paragraph with or without the
23approval of the agency having jurisdiction over the property and regardless of
24whether the property is included in an inventory submitted under par. (d).
The
25building commission does not have the authority to sell or lease any state-owned real

1property under this paragraph after the department of administration notifies the
2commission in writing that an offer of sale or sale or lease agreement with respect
3to a property is pending under s. 16.848 (1). If the sale or lease is not completed and
4no further action is pending with respect to the property, the authority of the building
5commission under this paragraph is restored.
AB40-ASA1,10m 6Section 10m. 13.48 (14) (am) 2. and 3. of the statutes are created to read:
AB40-ASA1,5,117 13.48 (14) (am) 2. If the building commission proposes to sell or lease any
8property identified in subd. 1., the commission shall first notify the joint committee
9on finance in writing of its proposed action. The commission shall not proceed with
10the proposed action unless the proposed action is approved by the committee.
11Together with any notification, the commission shall also provide all of the following:
AB40-ASA1,5,1312 a. The estimated value of the property as determined by the department of
13administration and by at least one qualified privately owned assessor.
AB40-ASA1,5,1514 b. The full cost of retiring any remaining public debt incurred to finance the
15acquisition, construction, or improvement of the property.
AB40-ASA1,5,1716 c. A cost-benefit analysis that considers the short-term and long-term costs
17and benefits to the state from selling or leasing the property.
AB40-ASA1,5,1918 d. The length and conditions of any proposed sale or lease between this state
19and a proposed purchaser or lessee.
AB40-ASA1,5,2120 e. The estimated budgetary impact of the proposed sale or lease upon affected
21state agencies for at least the current and following fiscal biennium.
AB40-ASA1,5,2222 f. Any other information requested by the committee.
AB40-ASA1,6,823 3. Except with respect to property identified in s. 16.848 (2), if any agency has
24authority to sell or lease real property under any other law, the authority of that
25agency does not apply after the commission notifies the agency in writing that an

1offer of sale or sale, or a lease agreement, is pending with respect to the property
2under this subdivision. If the sale or lease is not completed and no further action is
3pending with respect to the property, the authority of the agency to sell or lease the
4property is restored. If the commission sells or leases any state-owned real property
5under this subdivision, the commission may attach such conditions to the sale or
6lease as it finds to be necessary or appropriate to carry out the sale or lease in the
7best interest of the state. This subdivision does not apply to real property that is
8exempted from sale or lease by the department of administration under s. 16.848.
AB40-ASA1,11 9Section 11. 13.48 (14) (b) of the statutes is amended to read:
AB40-ASA1,6,1910 13.48 (14) (b) Subject to par. (d), the The building commission shall sell or lease
11on the basis of either public bids, with the building commission reserving the right
12to reject any or all bids in the best interest of the state, or on the basis of negotiated
13prices as determined through a competitive or transparent process. Buildings,
14structures and land mentioned in this subsection shall be subject to general property
15taxes levied by those taxing bodies within whose area they lie if used for commercial
16purposes, and shall be subject to special assessments for public improvements in the
17same manner and to the same extent as privately owned buildings, structures and
18land
real property, subject to approval of the building commission when required
19under s. 66.0703 (6).
AB40-ASA1,12 20Section 12. 13.48 (14) (bg) of the statutes is created to read:
AB40-ASA1,6,2421 13.48 (14) (bg) If any property that is proposed to be sold by the commission
22under par. (am) is co-owned by a nonstate entity, the commission shall afford to that
23entity the right of first refusal to purchase the share of the property owned by the
24state on reasonable financial terms established by the commission.
AB40-ASA1,13 25Section 13. 13.48 (14) (br) of the statutes is created to read:
AB40-ASA1,7,8
113.48 (14) (br) If the building commission sells or leases any real property
2under par. (am) that was under the jurisdiction of an agency prior to the sale or lease,
3the agency shall convey all systems, fixtures, or additional property interests
4specified by the commission to the purchaser or lessee of the property on terms
5specified by the commission. If the commission sells or leases a state-owned heating,
6cooling, or power plant that is under the jurisdiction of an agency, the agency shall
7convey all real and personal property associated with the plant to the purchaser or
8lessee on terms specified by the commission.
AB40-ASA1,14 9Section 14. 13.48 (14) (c) of the statutes is renumbered 13.48 (14) (c) (intro.)
10and amended to read:
AB40-ASA1,8,1911 13.48 (14) (c) (intro.) If Except as provided in par. (e), if there is any outstanding
12public debt used to finance the acquisition of a building, structure or land or the,
13construction, or improvement of a building or structure any property that is sold or
14leased under par. (b) (am), the building commission shall deposit a sufficient amount
15of the net proceeds from the sale or lease of the building, structure or land property
16in the bond security and redemption fund under s. 18.09 to repay the principal and
17pay the interest on the debt, and any premium due upon refunding any of that debt.
18Except as provided in s. 51.06 (6), if If there is any outstanding public debt used to
19finance the acquisition, construction, or improvement of any property that is sold or
20leased under par. (am), the building commission shall then provide a sufficient
21amount of the net proceeds from the sale or lease of the property for the costs of
22maintaining federal tax law compliance applicable to the debt. If the property was
23acquired, constructed, or improved with federal financial assistance, the commission
24shall pay to the federal government any of the proceeds required by federal law. If
25the property was acquired by gift or grant or with gift or grant funds, the commission

1shall adhere to any restriction governing use of the proceeds. Except as required
2under par. (e) and ss. 20.395 (9) (qd) and 51.06 (6), if
there is no such debt
3outstanding, or, there are no moneys payable to the federal government, and there
4is no restriction governing use of the proceeds, and
if the net proceeds exceed the
5amount required to repay that principal and pay that interest and premium be
6deposited, paid, or used for another purpose under this subsection
, the building
7commission shall deposit first use the net proceeds or remaining net proceeds in the
8budget stabilization fund.
to pay principal and interest costs on outstanding public
9debt supported by the same funding source and issued under the same bonding
10purpose authorization that was used to finance the acquisition, construction, or
11improvement of the property that is sold or leased under par. (am). If any net
12proceeds remain thereafter, the commission shall use the proceeds to pay principal
13and interest costs on other outstanding public debt. For the purpose of paying
14principal and interest costs on other outstanding public debt under this paragraph,
15the commission may cause outstanding bonds to be called for redemption on or
16following their optional redemption date, establish one or more escrow accounts to
17redeem bonds at their optional redemption date, or purchase bonds in the open
18market. To the extent practical, the commission shall consider all of the following
19in determining which public debt to redeem:
AB40-ASA1,15 20Section 15. 13.48 (14) (c) 1. to 4. of the statutes are created to read:
AB40-ASA1,8,2321 13.48 (14) (c) 1. To the extent that debt service on the property being sold or
22leased was paid from a segregated fund, other outstanding public debt related to that
23segregated fund should be redeemed.
AB40-ASA1,9,224 2. The extent to which general obligation debt that was issued to acquire, build,
25or improve the property being sold or leased is subject to current optional

1redemption, would require establishment of an escrow, or could be assigned for
2accounting purposes to another statutory bond purpose.
AB40-ASA1,9,33 3. The fiscal benefit of redeeming outstanding debt with higher interest costs.
AB40-ASA1,9,54 4. The costs of maintaining federal tax law compliance in the selection of
5general obligation debt to be redeemed.
AB40-ASA1,16 6Section 16. 13.48 (14) (cm) of the statutes is created to read:
AB40-ASA1,9,257 13.48 (14) (cm) If there are any outstanding revenue obligations, issued
8pursuant to subch. II of ch. 18, used to finance the acquisition, construction, or
9improvement of any property that is sold or leased under par. (am), the commission
10shall deposit a sufficient amount of the net proceeds from the sale or lease of the
11property in the respective redemption fund provided under s. 18.561 (5) or 18.562 (3)
12to repay the principal and pay the interest on the revenue obligations, and any
13premium due upon refunding any of the revenue obligations. If there are any
14outstanding revenue obligations, issued pursuant to subch. II of ch. 18, used to
15finance the acquisition, construction, or improvement of any property that is sold or
16leased under par. (am), the commission shall then provide a sufficient amount of the
17net proceeds from the sale or lease of the property for the costs of maintaining federal
18tax law compliance applicable to the revenue obligations. For the purpose of paying
19principal and interest costs on other outstanding revenue obligations, the
20commission may cause outstanding revenue obligations to be called for redemption
21on or following their optional redemption date, establish one or more escrow accounts
22to redeem obligations at their optional redemption date, or purchase bonds on the
23open market. Except as required under par. (e) and ss. 20.395 (9) (qd) and 51.06 (6),
24if the net proceeds exceed the amount required to be deposited, paid, or used for
25another purpose under this paragraph, the department shall use the net proceeds

1or the remaining net proceeds to pay principal and interest costs on other similar
2revenue obligations.
AB40-ASA1,17 3Section 17. 13.48 (14) (d) 1. of the statutes is repealed.
AB40-ASA1,18 4Section 18. 13.48 (14) (d) 2. of the statutes is renumbered 13.48 (14) (d) and
5amended to read:
AB40-ASA1,10,166 13.48 (14) (d) Biennially, beginning on January 1, 1984, each agency having
7surplus land
2014, each agency shall submit to the department of administration an
8inventory of all real property under its jurisdiction. Except with respect to the Board
9of Regents of the University of Wisconsin System, the inventory shall include the
10estimated fair market value of each property. The agency shall specifically identify
11any underutilized assets in the inventory. No later than July 1 following receipt of
12the inventories, the department of administration shall obtain appraisals of all
13properties in the inventories that are identified by the department for potential sale
14and
shall submit to the building commission and the joint committee on finance an
15inventory containing the location, description and fair market value of each parcel
16of surplus land property identified for potential sale.
AB40-ASA1,19 17Section 19. 13.48 (14) (d) 3. of the statutes is repealed.
AB40-ASA1,20 18Section 20. 13.48 (14) (d) 4. of the statutes is repealed.
AB40-ASA1,21 19Section 21. 13.48 (19) of the statutes is amended to read:
AB40-ASA1,11,520 13.48 (19) Alternatives to state construction. Whenever the building
21commission determines that the use of innovative types of design and construction
22processes will make better use of the resources and technology available in the
23building industry, the building commission may waive any or all of s. 16.855, except
24s. 16.855 (13) and (14m) (a) to (c),
if such action is in the best interest of the state and
25if the waiver is accomplished through formal action of the building commission. The

1building commission may authorize the lease, lease purchase or acquisition of such
2facilities constructed in the manner authorized by the building commission. Subject
3to the requirements of s. 20.924 (1) (i), the building commission may also authorize
4the lease, lease purchase or acquisition of existing facilities in lieu of state
5construction of any project enumerated in the authorized state building program.
AB40-ASA1,22 6Section 22. 13.48 (20) of the statutes is amended to read:
AB40-ASA1,11,107 13.48 (20) Residence halls. The Except as provided in sub. (14) (am), the
8building commission may approve the sale or lease of state-owned residence halls
9by the board of regents of the University of Wisconsin System to another state agency
10or a nonstate nonprofit agency for purposes provided in s. 36.11 (1) (e).
AB40-ASA1,23 11Section 23. 13.48 (22) of the statutes is amended to read:
AB40-ASA1,11,1812 13.48 (22) Sale or lease of capitol area lands. The building commission may
13lease or resell lands acquired in the capitol planning area for public or private
14redevelopment and may set such conditions of sale or lease as it deems necessary to
15ensure development compatible with the needs of the community and the state. This
16subsection does not apply to lands that are authorized to be sold or leased under s.
1716.848 while an offer of sale, sale, or lease agreement is pending or while the lands
18are leased
.
AB40-ASA1,24 19Section 24. 13.48 (23) of the statutes is amended to read:
AB40-ASA1,12,220 13.48 (23) Lease of space for commercial use. The Except as provided in sub.
21(14) (am), the
building commission may lease space in state office buildings for
22commercial use, including without limitation because of enumeration, retail, service
23and office uses. In doing so the building commission shall consider the cost and fair
24market value of the space as well as the desirability of the proposed use. Such leases

1may be negotiated or awarded by competitive bid procedures. All such leases of space
2in state office buildings shall provide for payments in lieu of property taxes.
AB40-ASA1,24c 3Section 24c. 13.48 (39i) of the statutes is created to read:
AB40-ASA1,12,114 13.48 (39i) Family justice center. (a) The legislature finds and determines
5that domestic violence affects families, especially women and children, throughout
6all communities in Wisconsin and that coordinating and centralizing victim and
7victim advocacy services in communities would greatly benefit state residents. It is
8therefore in the public interest, and it is the public policy of this state, to aid in the
9construction of a facility, to be located in the city of Milwaukee, to coordinate and
10centralize victim and victim advocacy services for families affected by domestic
11violence.
AB40-ASA1,12,2012 (b) The building commission may authorize up to $10,625,000 in general fund
13supported borrowing to aid in the construction of a facility, to be located at 619 West
14Walnut Street in the city of Milwaukee, to coordinate and centralize victim and
15victim advocacy services for families affected by domestic violence. The state funding
16commitment shall be in the form of a grant to the Children's Hospital of Wisconsin.
17Before approving any state funding commitment for construction of such a facility,
18the building commission shall determine that the Children's Hospital of Wisconsin
19has secured additional funding from nonstate sources for the project in an amount
20at least equal to the amount of the grant.
AB40-ASA1,12,2521 (c) If the building commission authorizes a grant to the Children's Hospital of
22Wisconsin under par. (b) and if, for any reason, the facility that is constructed with
23funds from the grant is not used as a center for families affected by domestic violence,
24the state shall retain an ownership interest in the facility equal to the amount of the
25state's grant.
AB40-ASA1,24e
1Section 24e. 13.48 (39j) of the statutes is created to read:
AB40-ASA1,13,92 13.48 (39j) Domestic Abuse Intervention Services, Inc. (a) The legislature
3finds and determines that domestic violence affects families, especially women and
4children, throughout all communities in Wisconsin and that the construction of
5shelter facilities and offices for providing services to domestic abuse victims would
6greatly benefit state residents. It is therefore in the public interest, and it is the
7public policy of this state, to aid in the construction and remodel of a shelter facility
8and offices, to be located in the city of Madison, to provide services to domestic abuse
9victims.
AB40-ASA1,13,1710 (b) The building commission may authorize up to $560,000 in general fund
11supported borrowing to aid in the construction and remodel of a shelter facility and
12offices, to be located at 2102 Fordem Avenue in the city of Madison, to provide shelter
13and services to domestic abuse victims. The state funding commitment shall be in
14the form of a grant to Domestic Abuse Intervention Services, Inc. Before approving
15any state funding commitment for expansion of such a facility, the building
16commission shall determine that Domestic Abuse Intervention Services, Inc., has
17secured additional funding from nonstate sources for the project.
AB40-ASA1,13,2218 (c) If the building commission authorizes a grant to Domestic Abuse
19Intervention Services, Inc., under par. (b) and if, for any reason, the facility that is
20constructed and remodeled with funds from the grant is not used as a shelter facility
21and offices to provide services to domestic abuse victims, the state shall retain an
22ownership interest in the facility equal to the amount of the state's grant.
AB40-ASA1,24g 23Section 24g. 13.48 (39k) of the statutes is created to read:
AB40-ASA1,14,624 13.48 (39k) Medical College of Wisconsin; community medical education
25facilities.
(a) The legislature finds and determines that expanding access to health

1care teaching institutions would greatly benefit state residents by addressing the
2increasing shortage of health care professionals available to provide care to state
3residents. It is therefore in the public interest, and it is the public policy of this state,
4to assist the Medical College of Wisconsin in the remodel, development, and
5renovation of 2 community medical education facilities in northeast Wisconsin and
6central Wisconsin.
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